I would like to know everyones opinion on how does one avoid a down payment when buying a property. I have heard about assignments, owner financing, quitclaim deeds coupled with non exclusive option. What other ideas does anyone have!
The last deal I did I put up $500 that I borrowed as earnest money. I agreed to pay $28,000 for the property and I got a $35,000 loan. I paid 3 months interest up front and had to escrow $2200 for repairs from the loan. I had to actually take another $760 to the closing for a total down payment of $1260. I also had to pay $300 for the appraisal. Hope to sell it in a few months for about $10,000 to $12,0000 profit. I have done better deals where I actually goy money at closing as much as $5000 on one deal. The lender knew about the deal and actually required 6 months payment up front which was an additional $3600 that I would have gotten. I did collect rent without making a payment which was kind of nice.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
To do no money deals, most likely you’ll need a motivated seller.
Try LO, Sub2, CFD also a grant program works.}
David Garcia
Do not use contract for deed in Texas unless you passed the bar exam and do not mind going to court a lot. Lot harder laws to follow and stiff penalties. Stay away from CFD’s
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
There are so many ways to do no money down deals, it would be quite a lengthy post.
Remember that no money down doesn’t always mean that the seller doesn’t get cash and it also doesn’t mean that a downpayment isn’t made.
You can use a credit card for a downpayment, that isn’t your money.
You can have a good enough relationship with a bank where they will fund the entire purchase.
You can have a partner bring the needed cash to the closing.
You can have the seller give you 100% financing.
You can have the seller take back a second that covers the bank’s required downpayment.
You can lease option a house with -0- down.
You can get a house under contract and flip it with nothing down.
You can sub2 a property and pay the arrears (if there are any) or any equity to the seller with your buyer/tenant buyer’s deposit to you.
and on and on.
Lots of ways to do it. Use your imagination.
Check out this thread…
http://www.reiclub.com/forums/index.php?board=6;action=display;threadid=1336
I put a post up… it’s all about ssome basic fundamentals…
David Alexander